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What Trump’s Sweeping Domestic Policy Law Means for American Workers
UNITED STATES, JUL 09 – The bipartisan bill raises the child tax credit to $2,200 but cuts Medicaid by $1 trillion and reduces SNAP funding, shifting more costs to states and imposing work requirements.
- President Donald Trump signed the One Big, Beautiful Bill into law on July 4, 2025, introducing a federal tax exemption for tipped income in the U.S.
- The law aims to fulfill Trump's campaign promise of 'no tax on tips' by allowing workers earning under $150,000 an annual deduction of up to $25,000 on tipped income starting the 2025 tax year.
- This provision applies only to federal income tax and exempts overtime pay up to $12,500; however, state, local, and payroll taxes still apply and the law will expire at the end of 2028 unless renewed.
- About 4 million U.S. tipped workers exist, but many earn too little to benefit significantly, with critics noting the legislation excludes most restaurant workers and may discourage wage increases.
- The bill’s passage could increase take-home pay for some tipped workers but also includes cuts to Medicaid and SNAP, with millions affected and states required to contribute more starting in 2028.
160 Articles
160 Articles
Digesting Trump’s Big Budget Law
The Host Julie Rovner KFF Health News @jrovner @julierovner.bsky.social Read Julie's stories. Julie Rovner is chief Washington correspondent and host of KFF Health News’ weekly health policy news podcast, “What the Health?” A noted expert on health policy issues, Julie is the author of the critically praised reference book “Health Care Politics and Policy A to Z,” now in its third edition. …
Trump's Unyielding Determination Fuels Major Domestic Accomplishments - Real News Now
In barely half a year into his term, President Donald Trump has impressively accomplished a vast majority of his campaign pledges. His bold maneuvers have included cutting taxes to stimulate the economy, launching strategic trade disputes, ensuring border security, and reducing superfluous elements of the federal government. Through his unyielding determination, he successfully navigated a crucial and comprehensive piece of legislation through C…
Breaking down Trump's policy act and its impact on Americans
It has been a week since Congress passed the Republicans' major budget act. But what’s in it and how it will affect Americans' day-to-day lives remains a mystery to most. Congressional correspondent Lisa Desjardins read the nearly 900-page law and joined Amna Nawaz to help make sense of it all.
Breaking down what's in Trump's big policy act and how it will affect Americans
It has been a week since Congress passed the Republicans' major budget act. But what’s in it and how it will affect Americans' day-to-day lives remains a mystery to most. Congressional correspondent Lisa Desjardins read the nearly 900-page law and joined Amna Nawaz to help make sense of it all.
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